/ 26 February 1999

Heystek to sue accusers for R2m each

Mungo Soggot and Belinda Beresford

Magnus Heystek plans to sue for R2-million each two men who laid charges against him earlier this month about his handling of a family trust.

The men are Clive Berman – the guardian of the beneficiaries of a trust of which Heystek is one of three trustees – and Lionel Reichenberg, a self-styled consumer rights activist. Reichenberg has been helping Berman in his campaign against Heystek and the other trustees, a psychologist and an attorney.

Berman made strong allegations about the handling of the Berman family trust in an affidavit he signed in support of the criminal charges.

In an affidavit accompanying his successful interim interdict applications against Berman and Reichenberg, Heystek categorically rejected all accusations levelled against him.

This week Heystek responded to an article on the dispute in last week’s Mail & Guardian, saying his lawyers were preparing summonses against the men. “I’ve instructed my attorneys to sue them each for R2-million.” The M&G attempted to contact Heystek while writing the story.

Berman had demanded the trustees hand over the trust’s financial statements since 1996. Last week, just before Heystek and his fellow trustees interdicted Berman from spreading the allegations in his affidavit, the 1996 and 1997 statements were delivered to Berman’s attorney on the Cape coast.

Heystek said the 1998 accounts would be ready shortly. He said they had been delayed because of the inordinate amount of time the trustees had spent dealing with Berman. “Whenever we have a meeting we spend the whole time talking about him. We can’t get to the actual accounts.”

Heystek complained that the M&G article had failed to make it clear that Berman’s affidavit had been filed with the police as part of a criminal complaint as opposed to being part of a civil claim.

Heystek also said Berman had never been one of his clients. According to an affidavit filed by Heystek, the two men met in 1994 when Berman approached Heystek for advice after hearing him on Radio 702. Berman introduced Heystek to his wealthy wife, Monica. The couple believed an existing family trust was being mishandled, and discussed setting up a new trust. The new trust was duly formed, with Heystek as one of three trustees.

The beneficiaries were the Bermans’ children. Heystek alleged on radio last week that Berman killed his wife in an epileptic fit. He indeed spent several years in Sterkfontein mental hospital after the incident, in which he also tried to kill himself. But in 1997 Berman was granted custody of his children.

Monica Berman – who died three months ago – received an instalment of R21-million from another trust in 1995. Monica Berman gave him power of attorney and joint signing power on her bank accounts. Heystek described Monica Berman as a “a woman inclined to squander money”.